SEBI Gives Nod for Same-day Stock Settlement Trial During the 204th meeting of the SEBI Board, it came to a consensus of the launch of Beta version of optional T+0 settlement
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On Friday, the Indian market regulator Securities and Exchange Board of India announced that it is looking to start a pilot project for moving to a T+0 settlement regime in the stock market on an optional basis. Initially, it would limited to 25 stocks with limited few brokers.
During the 204th meeting of the SEBI Board, it came to a consensus on the launch of the Beta version of the optional T+0 settlement. "In parallel, SEBI shall continue to do further stakeholder consultation, including with the users of the Beta version," the official statement read.
Additionally, it shall review the progress after three and six months from the date of the implementation, and decide on further course of action.
Other SEBI Board meeting Outcomes
The board also decided on the exemption of additional disclosure requirements for certain FPIs. This will be applicable for FPIs having more than 50 per cent of their India equity AUM in a single corporate group.
In order to facilitate ease of doing business for FPIs, SEBI approved for relaxation of the timelines for disclosure of material changes which currently is within seven working days. It has also called for the materials to be categorized into two categories- Type I and Type II. "Type I material changes, shall continue to be informed by FPIs to their DDP within seven working days of the occurrence of the change. However, supporting documents for the same (if any) shall now be required to be provided within 30 days of such change. Other material changes (categorized as Type II) shall be informed along with supporting documents (if any) by FPIs to their DDP within 30 days of such change," it stated.
It also made amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. It is doing away with the one per cent security deposit in public/rights issue of equity shares. Promoter group entities and non-individual shareholders with more than five per cent of the post-offer equity share capital will be permitted to contribute to minimum promoters' contribution without being identified as a promoter; equity shares from the conversion of compulsorily convertible securities held for a year prior to the DRHP filing will be an MPC requirement; and increase or decrease in size of an offer for sale shall be based on either of the two- either issue size in rupees or a number of shares.
For the listed companies, mcap-based compliance requirements will be determined on the basis of the average market capitalization of six months ending December 31. There is an increase in the maximum permitted time gap between two consecutive meetings of the Risk Management Committee to 210 days.
